Does Homeowners Insurance Cover Musical Instruments?

Yes, it does. However, insurance companies make an important distinction between personal and business use, so understanding the difference is critical to properly covering your musical instruments and equipment.

In this article, I’ll explore those differences and highlight the most important aspects of homeowners insurance as it relates to musical instruments.

Because different insurance companies have different limits and exclusions, I will use general terms and encourage you to actually read your own policy and talk to your agent to understand the specifics as they relate to your unique needs.

As a licensed insurance agent, I have personally managed physical damage and theft claims related to guitars, pianos, drums, and much more. As a professional guitarist, I understand how devastating the loss of a cherished instrument can be. Drawing on my professional experience in both of these worlds, I can shed light on some of the insurance nuances often overlooked by musicians.

So, let's take a closer look at how we can sleep better at night, knowing that our beloved and often expensive instruments are properly insured in the face of uncertainty.

1. The Need for Specialized Coverage

Attention musicians: do not assume your homeowner's insurance is a blanket solution. Specialized coverage tailored to the unique risks of musicians is essential.

Homeowners insurance as we know it began in the 1950s and was an innovation for its time because it combined into one policy, several policies that were previously sold separately, such as fire, theft, personal property loss, etc. Even though these new homeowner policies offer “blanket” coverage for most of the critical insurance needs of a homeowner, they don’t really cover everything, and there are important limits and exclusions that musicians need to be aware of.

Perhaps the most important yet often overlooked limit and/or exclusion related to musicians is in the language in a homeowners policy realted to business vs personal use. If you earn money resulting from the use of your instruments, don’t assume they are covered by your homeowner’s policy. This includes receiving payment for playing gigs on the weekend and getting paid for recording or other studio work at your home studio. Home studios are often viewed by insurance companies as commercial spaces, so it's important to talk with your insurance agent if you have one. But don’t fret; properly covering the gear you own that you use to make money can be surprisingly inexpensive.

A cautionary tale: I have personally had to reiterate to a professional drummer that his theft claim was denied after he told a claims adjuster over the phone that he did, in fact, earn money performing with said drums. It was not a happy moment! The reason his claim was denied was that his policy excluded musical instruments that were used in a business. The moral of this story is to talk to your insurance agent honestly about your musical endeavors so they can properly protect you.

2. Valuing Your Instruments Correctly

Insurance companies are required by law to settle claims quickly. This means that in case of a loss, they will ask the claimant for a list of the property they lost, and then they will essentially write them a check for the amount of money it would take to replace the stuff that was lost. Because of the legal requirements and the sheer volume of claims coming in, insurance companies try to process claims as quickly as possible, sometimes at the expense of complete accuracy. Because the people who process these claims are usually not appraisers, or for that matter, expert guitarists or recording engineers, they may not know the difference between a vintage ‘59 Les Paul and a brand new ‘59 Les Paul re-issue. After all, they both look pretty much the same, and they’re both “59 Les Pauls,” right?

This is where getting a professional appraisal can come in very handy.

Don’t assume your insurance company knows that your ‘65 Deluxe Reverb amp was actually made in 1965 and is, therefore, more costly to replace than a brand new re-issue version. I have actually dealt with this exact situation before, and no, the insurance company did not know the difference from the pictures that were sent in by the claimant.

A professional appraisal in accordance with USPAP will not only accurately identify the property in question, but it will also conclude the proper replacement value for it. Having an appraisal of your gear on hand in case of a loss will clear up any confusion about the actual replacement value of your instrument and equipment, making the claims process much easier and much more efficient.

If you don’t have a current appraisal, a good place to start is by taking photos and making a list of all your instruments, including year, make, model, and serial number. This alone will greatly improve the claims process in case of a loss.

3. Taking the Show On the Road

Homeowner’s policies also limit and/or exclude property that is away from the premises listed on the policy.

So, even if you have gotten coverage for the business use of your home studio and/or instruments, your coverage may still fall short if you are taking the show on the road. To overcome any potential gaps in coverage, talk to your agent about the gigs away from home you are involved with. They may suggest a special property insurance called an Inland Marine. The seemingly odd name stems from perhaps the oldest risk-hedging efforts relating to the damage of commercial ships and their cargo, which needed coverage wherever they might be in the world. An Inland Marine policy covers property (you guessed it) wherever it might be on land.

With a policy like this in your pocket, you can rest assured your gear will be covered wherever you go as long as it’s within the limits stated in your policy.

4. Public Liability and Beyond

In a litigious society like ours, public liability insurance adds an extra layer of protection against unforeseen legal challenges.

Unfortunately, musicians and performers regularly face legal challenges that stem from their liability for accidents that cause injury or property damage to a third party due to their negligence. These claims can be extremely complicated, but to illustrate the idea generally, if you caused property damage or bodily injury to a third party because of your negligence, you can be held liable. If you don’t have a policy protecting you financially from such a lawsuit and you are faced with one, it can be a career-ending event.

Some musicians get pretty wild during their performances. Sometimes, people in the crowd get injured. Sometimes, property belonging to the venue gets damaged. Who’s liable? Could a clever attorney pin it on you? If you are a performing musician or have clients walking into your studio where they could trip over a microphone cable, talk to your agent about the scope of your liability coverage, close any gaps, and proceed to sleep better at night.

5. Overcoming Insurance Anxiety

Dealing with insurance might seem overwhelming, but contrary to common belief, musician's insurance is not as expensive as you might think.

Creating an itemized list of gear, working with a qualified appraiser, and working closely with insurance agents are basic yet critical steps to getting proper coverage for your specific needs.

Your lofty musical aspirations and trusty instruments deserve protection. If you have questions or are in need of professional appraisal services, contact me here.